We are not seeing any locked tables at all any longer. That was the biggest improvement, obviously.
Here's the top part of our my.cnf, I think I still need to tweak it more, although our performance stats are nearly ideal. 1.8Ghz Intel, 1GB RAM, 60(?)GB HDD, RH7.3, MySQL3.23.55.
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skip-locking
set-variable = max_connections=150
set-variable = key_buffer=512M
set-variable = max_allowed_packet=1M
set-variable = table_cache=512
set-variable = sort_buffer=4M
set-variable = record_buffer=2M
set-variable = myisam_sort_buffer_size=64M
set-variable = thread_cache=8